Impact of Board Characteristics and Corporate Diversification on Firms Financial Performance

This study is to investigate the impact of board characteristics and corporate diversification on firm’s financial performance of non-financial firms (Industrial sector) in Sultanate of Oman. The secondary data were collected from the annual reports of the non-financial firms which are registered in Muscat securities exchange (MSX), Sultanate of Oman. The total population of the registered 31 non-financial firms were selected for this study. The study period covers 10 years from 2013 to 2022. The study applied descriptive statistics, correlation, panel unit root test and Pooled Ordinary Least Square Method (OLS) to test hypotheses. The study found that higher Return on Equity is linked to larger board sizes, the presence of foreign directors, a greater proportion of independent directors. Whereas, Board Size and directors educational Background show negative and significant associations with Return on Assets. Further there is no significant influence of gender diversity, International Diversifications on both ROE and ROA.